Lin­ley Val­ley pon­ders con­tracts

Countryman - - NEWS - Jenne Bram­mer

Dom­i­nant pig meat whole­saler Lin­ley Val­ley Pork is re­assess­ing whether it will con­tract as many pigs from farm­ers in the fu­ture, against a back­drop of in­dus­try tur­moil.

Par­ent com­pany Craig Mostyn Group is re­view­ing its con­tract ar­range­ments as an over­sup­ply of pork is com­pounded by high grain prices. Group chief ex­ec­u­tive Patrick Walsh said about 60 per cent of the WA pigs sold to Lin­ley Val­ley, in­clud­ing those pro­duced by CMG’s own farms, were un­der a con­tract ar­range­ment, a far higher fig­ure than in other States, where the pro­por­tion of pigs sold un­der con­tracts was about 15 per cent.

The high num­ber of con­tracts in WA came about five years ago when Lin­ley Val­ley had dif­fi­culty se­cur­ing a con­sis­tent and reg­u­lar sup­ply of pigs.

Mr Walsh said Craig Mostyn had since built up its own pig­gery farms, help­ing en­sure a con­sis­tent sup­ply. He said in­ter­nal dis­cus­sions were in progress on whether it would be bet­ter in­stead to pay mar­ket prices to farm­ers for their pigs, though no de­ci­sion had been made.

The WA Pork Pro­duc­ers As­so­ci­a­tion said it cost about $2.70$3.30/kg to pro­duce a pig to fin­ish­ing weight, but the mar­ket rate from buy­ers was about $2.50 — equiv­a­lent to a loss of up to $56 a pig. The cri­sis has forced some small pro­duc­ers out of busi­ness and it was last week re­vealed the State’s third-big­gest pig­gery GD Pork had gone into vol­un­tary ad­min­is­tra­tion.

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